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as constructive dividends to Elvin. We also conclude that Elvin
received a constructive dividend of $1,155 for maintenance,
repairs, and operation of the Sea Ray Boat that were paid by YOC
in 1983 but that were not deducted by YOC as a business expense.
The Motor Home -- Claimed Business Expenses
and Constructive Dividends
Petitioners argue that because YOC received the motor home
in trade on the sale of a new automobile and because Elvin used
the motor home primarily for business, the motor home should be
treated as an asset of YOC and expenses associated with the motor
home should be treated as deductible business expenses of YOC.
Respondent argues that the motor home should be treated as
Elvin's property and that Elvin used the motor home almost
exclusively for personal use. Respondent therefore concludes
that the full $10,000 cost of the motor home should be treated as
a constructive dividend to Elvin. Respondent also argues that
the $10,697 in 1983 and the $16,802 in 1984 paid by YOC for
maintenance, improvement, and operation of the motor home should
be disallowed as business expenses of YOC and should be treated
as constructive dividends to Elvin.
We agree with petitioner as to ownership of the motor home,
but we agree with respondent as to its use and as to the various
expenses related thereto.
YOC received the motor home as a trade-in on the purchase of
a new automobile in a valid business transaction, and the motor
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